HC held that the legal notice served on two partners of the ...

Legal Notice Served to Partners Deemed Valid; Security Cheque Confirms Debt Liability Under Section 138 of NI Act

May 23, 2025

Case Laws Indian Laws HC

HC held that the legal notice served on two partners of the partnership firm was valid, despite not being directly addressed to the firm. The blank security cheque issued in 2009 was deemed a legitimate instrument for discharging outstanding debt. The court rejected technical objections regarding notice service and partner liability, finding prima facie evidence of legally enforceable liability. The third petitioner (partner's wife) cannot be discharged at the summoning stage without proving her non-involvement. The complaint under Section 138 of NI Act stands, and the petition challenging the criminal proceedings was dismissed.

View Source

← Previous Next →

HC held that the legal notice served on two partners of the ...

Legal Notice Served to Partners Deemed Valid; Security Cheque Confirms Debt Liability Under Section 138 of NI Act

May 23, 2025

Case Laws Indian Laws HC

You may also like:

Dishonor of cheque - presumption that cheque was issued in discharge of legal liability, burden on accused to prove contrary. Supreme Court observations: While deciding...

Dishonour of Cheque - discharge of legal liability or cheque issued towards the security - it was duly proved that the cheque was issued in discharge of the legal...

The High Court considered whether dishonored cheques were given for a legally enforceable debt. The appellant failed to prove the existence of a default by the...

Dishonor of Cheque - enforceable debt at the time of encashment - The first respondent has made part-payments after the debt was incurred and before the cheque was...

Dishonor of Cheque - validity of legal notice - the exact amount, which the appellant claimed for towards the dishonoured cheques was not mentioned in the legal notice,...

The court held that even if a debt is time-barred, the issuance of a cheque towards such debt creates a fresh legally enforceable liability u/s 25(3) of the Indian...

Dishonor of Cheque - legally enforceable debt - cheque was given by the respondent to the revisionist for collateral security not as discharge to any of debt or other...

SC held that mere resignation or internal partnership agreement does not legally discharge a partner's liability under the Negotiable Instruments Act. Statutory...

Master Circular consolidates provisions for issue and listing of non-convertible securities, securitized debt instruments, security receipts, municipal debt securities,...

Validity of the assessment framed u/s 147 - Proof of service of notice - There was no valid service of notice u/s 148 of the Act in the present case. The finding of the...

The Securities and Exchange Board of India (SEBI) has amended the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations,...

Validity of SCN - delivery of notices beyond the time limitation - the notice was served on them by hand on 03.04.2001. In such circumstances, the service of notice...

Maintainability of Arbitration application - time limitation - the appellant, who served the legal notice invoking the arbitration clause and requesting for appointment...

Dishonor of Cheque - service of demand notice - Period of limitation - the petitioner relies on the dates of return memos, i.e., dates of return of cheques in question,...

Dishonor of Cheque - insufficiency of funds - legally enforceable debt or not - even if a cheque is a security cheque, the same is an integral part of the commercial...

Quick Updates: